An assessment of inbound supply chain management in Guinness Ghana Breweries limited.
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Date
2008-06-05
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Abstract
Supply chain management is a network of suppliers, customers, the organisation made up of procurement and manufacturing teams, wholesalers and retailer. For an organisation to function, raw materials, spare and equipment would have to be sourced from suppliers by procurement team processed by manufacturers and then distributed to final customers either through wholesalers and retailers or directly. The inbound supply chain has to do with procurement team selecting right suppliers, evaluating their performance with respect to the organisation’s goals and objectives and sustain the relationship by paying suppliers when due.
The study showed the impact of inbound supply chain management on the performance of Guinness Ghana Breweries limited (GGBL) using the annual reports and financial statements. From the analysis GGBL’s turnover increased by 60% from 2003 to 2007 indicating that adequate purchases of raw materials, spare parts and equipment were acquired leading to the increase in growth.
However, 47% of GGBL employees disagree that procurement pays suppliers on time after correct and complete receipt of invoice. Also, 48% of suppliers from the survey likewise indicated that there are delays in payment. This has serious implications in that a purchase order once generated is a binding document, which can lead to legal dispute by the aggrieved supplier, in case of delays in payment.
To resolve this challenge a committee made up of stakeholders from the various departments and procurement needs to be formed to supervise all purchases (from budget) such that unwanted purchases are not encouraged to increase GGBL debts and also management must be committed to settle all payment issues as scheduled.
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A thesis presented to the School of Graduate Studies, in partial fulfilment of the requirements for the award of Executive of Master Business Administration Degree, August-2008